As the world slowly recovers from the COVID-19 pandemic, Myanmar battles the plunging MMK amid the dollar shortage. It is confronted by the worst economic situation, impacted by the challenges of the pandemic and post coup financial implications.
With foreign direct investment dwindling and MMK depreciating, the threat of the middle class falling below the poverty line looms. Besides, the government restrictions on barring citizens from converting to US dollars and the surge in black money make it imperative for the common masses to find ways to save money.
Well, there are various ways you can save money amidst MMK devaluation.
In this blog, we delve into the various options middle-class citizens of Myanmar can adopt to save money amidst MMK devaluation.
Let’s get started.
Five Ways To Save Money Amidst Myanmar Kyat Devaluation
Cryptocurrencies are one of the lucrative options to save money amidst MMK devaluation, though with risks. Thanks to the blockchain technology that introduced us to these precious digital gems. In Myanmar, due to the dramatic economic crisis in Myanmar, people are losing faith in the banking system. It is driving them towards cryptocurrency as a viable alternative. Though the battle to accept crypto as a legal currency is on, there is progress in this regard.
That being said, you need to first understand the pros and cons of using cryptocurrency.
- With the economy in the doldrums and people wary of banks and central authorities, cryptocurrency offers a decentralized means to transact without involving intermediaries.
- Payments are safe and secure and provide a degree of anonymity.
- Cryptocurrency is a cheaper way to send and receive money as compared to online payments.
- Transfer of money as cryptocurrency takes place in a few minutes.
- Highly volatile and price swings concern the investors.
- Sometimes, if the network is down, the transfer of currency may be delayed.
- Risk of losing your private key or password of external wallets.
However, despite these minor drawbacks, considering the current scenario in Myanmar, cryptos are an option that can ease the tension.
Interested to invest in crypto-currencies? Check our guide How to Buy Bitcoin in Myanmar?
In this kind of sky is falling situation, when financial markets stop functioning, it is best to opt for gold, silver, and other valuable metals like platinum or copper as they will continue to retain their value, even if they don’t appreciate.
While we tend to remain optimistic and don’t talk of hyperbole, like going back to the era of the barter system, it makes sense to hold a certain proportion of your assets in this form. Particularly, with precious gems like rubies being all the more in use in Myanmar, people can easily save them as an alternative for the uncertain future.
One of the top places to buy gems in Myanmar is the Myanmar Gems Museum. Located on Kaba Aye Pagoda Road, Yangon, this museum is dedicated to Burmese gemstones. The museum organizes the semi-annual Myanmar Gems Emporium, a very famous event attended by jewelry merchants from around the world.
Another very good place to buy gems is the International Gems and jewelry Fair which is organized in Mandalay Yatanar Mall each year. At this fair, you will find Myanmar’s renowned gemstones such as ruby, sapphire, jade, amber, and pearl, along with more than a hundred different kinds of gems.
Finally, if you are looking to acquire a small amount of gold, the Bogyoke Market (Scott Market) in Pabedan township in Yangon is a very good place to trade your Myanmar Kyats against gold.
In times of economic slowdown and recession, when banks and stocks fail, real estate investment may be a good option. If you already own a piece of land, fix it up and rent it out to earn a constant income during these challenging times.
On the banks of the Bago River, Star City is one example of an attractive real estate investment existing in Myanmar. The residential project stands in Thanlyin, and connects to Yangon with a bridge across the Bago River.
Real estate can be an excellent upside investment in the long term. While some people may be skeptical about investing in this sector, there is some striking information that could make you change your mind. Luxury real estate sales are tremendously growing in Myanmar amidst the coup.
Fiat like Yuan or Ruble
In these crucial times, when Myanmar faces the US dollar hegemony, people can opt for other fiat currencies like Yuan and Ruble. As a matter of fact, recently, Myanmar accepted Yuan as an official currency for border trade with China. Using these alternative currencies for transactions will help transact and save money amidst MMK devaluation.
As agriculture is the key source of Myanmar’s GDP, most common people would own a farm. Ownership of even a small piece of farmland is a great advantage. You can use it for captive consumption or use a small parcel of it for growing some other supplies that you can sell for profit.
Myanmar is going through a very tough phase in its economy. However, the common people can save money amidst the devaluation for the future by adopting one or more of the above-mentioned ways and sailing through smoothly.